14 Although SBS has accepted significant risks, it considers that the transfer of the entire operational service under a long-term contract provides the power and necessary incentives to manage those risks. For instance, SBS is responsible for operational errors. If an overpayment is made to a customer, SBS has to reimburse National Savings and take action to recover the overpayment. If an underpayment occurs, National Savings bears no cost risk for any SBS errors but SBS will have to pay compensation to customers if sums due have been paid late and may, if too many underpayments are made, incur performance deductions. SBS must also bear the cost of all staff fraud and any customer fraud in any one year in excess of £250,000. There are, therefore, powerful incentives for SBS to limit the number of operational errors.